East Java legislator asks Finance Minister to review cuts to regional funding

Surabaya (ANTARA) - A member of the East Java Regional Representative Council (DPRD) has asked Finance Minister Suahasil Nazara to review the policy of cutting Transfer to Regions (TKD) funds, arguing it affects the fiscal capacity of regional governments to carry out development programmes.

Jairi Irawan, Deputy Chair of Commission E of the East Java DPRD, said in Surabaya on Tuesday that a review is needed, particularly for regions with limited fiscal capacity that require central government funding support.

“Over the past two years, the central government’s budget for the regions has been cut quite substantially, so regional governments are struggling to breathe, especially in implementing their budgets,” he said.

Jairi noted that TKD for the East Java Provincial Government in the 2026 fiscal year will fall by more than Rp2 trillion compared with 2025, while the reduction for district and city governments across East Java reaches Rp17.5 trillion.

According to the Golkar politician, the TKD policy needs to take into account the fiscal capacity of each region.

Regions with limited fiscal capacity, he said, need greater support from the central government, while regions with strong fiscal capacity also deserve recognition.

“If some regions have small fiscal capacity, they need funding support from the government. But if some regions have large fiscal capacity, there should also be appreciation, so there is a balancing of funding across the regions,” he said.

Based on data from the Regional Financial Information System of the Directorate General of Fiscal Balance at the Ministry of Finance, TKD listed in the regional budgets (APBD) of East Java’s regional governments in 2025 amounted to around Rp82.11 trillion.

In 2026, the TKD value listed in the regional budgets of East Java’s regional governments is recorded at around Rp67.21 trillion, a decrease of approximately Rp14.9 trillion from the previous year.

The difference in figures may be influenced by the database used, including the initial TKD allocation, the value listed in the APBD after adjustments, and the scope of regional governments included in the calculation.

Jairi also expressed hope that Finance Minister Suahasil can improve his ministry’s performance, both in responding to market dynamics and in translating government programmes so that their benefits are more keenly felt by the public.

“Mr Purbaya performed well previously, but going forward we hope things can be firmer and even better,” he said.